BLAW Chapter 16 Exam 3

materially altered

To discourage parties from altering written contracts, the law allows an innocent party to be discharged from a contract that has been ___

operation of law

Under specified circumstances, contractual duties may be discharged by ___, such as material alteration of the contract, an applicable statute of limitations, bankruptcy, impossibility of performance, and frustration of purpose

mutual rescission

For ___ to occur, the parties must make another agreement that also satisfies the legal requirements for a contract- offer, acceptance, and consideration

discharge

an accord and satisfaction ___ the original contractual obligation

2-3

The period for bringing lawsuits for breach of oral contracts is usually ___ years

subjective impossibility

"I'm sorry, I personally cannot do it"

objective impossibility

"it cannot be done"

requirements for novation

1. previous valid obligation 2. agreement by all parties to a new contract 3. extinguishing of old obligation (discharge of prior party) 4. new, valid contract

condition precedent

A condition that must be fulfilled before a party's promise becomes absolute. Precedes the absolute duty to perform

promised

A contract comes to an end when both parties fulfill their respective duties by performing the acts they have ___

impossibility of performance

A doctrine under which a party to a contract is relieved of the duty to perform when performance becomes objectively impossible or totally impractical, and can discharge the contract

frustration of purpose

A party to a contract will be relieved of the duty to perform when the objective purpose of performance no longer exists due to reasons beyond their control

substantial performance

A party who in good faith performs substantially all of the terms of a contract can enforce the contract against the other party under the doctrine of ___

assets

A proceeding in bankruptcy attempts to allocate a debtor's ___ to the creditors in a fair and equitable fashion

complete

When a party performs exactly as agreed, there is no question as to whether the contract has been performed. When a party's performance is perfect, it is said to be ___

temporary impossible

An occurrence or event that makes performance ___ operates to suspend performance until the impossibility ceases, after which the parties must perform the contract as originally planned

anticipatory repudiation

Before either party to a contract has a duty to perform, one of the parties may refuse to perform that party's contractual obligations. This action is called ___

simultaneously

Concurrent conditions exist only when the parties expressly or impliedly are to perform their respective duties ___

reasonable person

Contracts often state that completed work must personally satisfy one of the parties or a third person. The question is whether the satisfaction becomes a condition precedent, requiring actual personal satisfaction or approval for discharge, or whether the test of satisfaction is performance that would satisfy a ___

commercial impracticability

Courts may exercise parties from their contractual obligations when the performance becomes more difficult or expensive than the parties originally contemplated

difficult, costly

For someone to invoke the doctrine of commercial impracticability successfully, the anticipated performance must become extremely ___ or ___, and must not have been foreseeable by the parties when the contract was made

value

Frustration of purpose typically involves an event that decreases the ___ of what a party receives under the contract

discharged

If a condition is not satisfied, the obligations of the parties are ___

absolute

If one party's performance is substantial, the other party's duty to perform remains ___

legal consideration

If the parties agree to rescind the original contract, their promises not to perform the acts promised in the original contract will be ___ for the second contract

C) frustration of purpose

In January, Victor contracted with Delrita to cater a Cinco de Mayo party for 500 of his closest friends. Neither of them anticipated that their entire state would be under stay-at-home orders on May 5 due to a global pandemic. Under what principle may Victor cancel his contract with Delrita? A) statute of limitations B) commercial impossibility C) frustration of purpose D) time is of the essence

accord and satisfaction

In an ___, the parties agree to accept performance different from the performance originally promised

absolute promises

In most contracts, promises of performance are not expressly conditioned or qualified; Instead, they are ___. They must be performed to avoid breach of contract

A) commercial impracticality

Jayden is restoring a house for Jane when Hurricane Emma hits and washes out the foundations of the house. The cost for restoration has just increased by 400%. Under what principle may Jayden's obligations be excused? A) commercial impracticality B) statute of limitations C) impossibility D) insurable interest

state otherwise

Most other contracts need be performed only to the satisfaction of a reasonable person unless they expressly ___

discharge in bankruptcy

Once the assets have been allocated, the debtor receives a ___

substantial performance

The basic requirements for performance to qualify as ___: 1. good faith 2. must not vary greatly from promise 3. create substantially same benefits as originally promised

foreseen

The doctrine of impossibility of performance is applied only when the parties could not have reasonably ___, at the time the contract was formed, the event or events that rendered performance impossible

conditioned, absolute

The duty to perform under a contract may be ___ on the occurrence or nonoccurrence of a certain event, or the duty may be ___

reasonable

The measure of damages from compensation due to failure to comply with the contract constitute the cost being ___

performance

The most common way to discharge, or terminate, one's contractual duties is by the ___ of those duties

4-5

The period for bringing lawsuits for breach of written contracts is usually ___ years

precedent, subsequent, concurrent

Three types of conditions can be present in any given contract: conditions ___, conditions ___, and ___ conditions

impossibility of performance

Three types of situations may qualify for discharge of contractual obligations based on ___: 1. party dies or becomes incapacitated 2. specific subject matter destroyed 3. change in law renders performance illegal

A) the subject matter of the contract becomes illegal B) a party to a personal contract dies or becomes incapacitated D) the specific subject matter of the contract is destroyed

What are the types of situations that may qualify as grounds for discharge due to impossibility? choose 3 answers: A) the subject matter of the contract becomes illegal B) a party to a personal contract dies or becomes incapacitated C) the price of the subject matter of the contract more than doubles D) the specific subject matter of the contract is destroyed

A) the offer must be communicated to the offeree B) the offeror must intend to be bound by the offer C) the terms of the offer must be reasonably definite so that all parties understand them

What elements are required for an offer to be effective under the common law? choose 3 answers: A) the offer must be communicated to the offeree B) the offeror must intend to be bound by the offer C) the terms of the offer must be reasonably definite so that all parties understand them D) the offer must be irrevocable for a set period of time to allow acceptance

D) a material breach results in damages to the non-breaching party, while an immaterial breach is minor

What is the difference between a material breach and an immaterial breach? A) a material breach is one that affects more than 50% of the product of the contract B) a material breach is one for which remedies are not spelled out in the contract, while remedies for an immaterial breach are specified C) a material breach is one that makes the contract commercially impracticable for the non-breaching party D) a material breach results in damages to the non-breaching party, while an immaterial breach is minor

B) by performance

What is the most common way that duties under a contract are discharged? A) by proving undue influence B) by performance C) frustration of purpose D) breach

A) satisfaction of a reasonable person C) satisfaction of the receiving party (buyer)

What is the standard to which most personal satisfaction contracts must adhere? choose 2 answers: A) satisfaction of a reasonable person B) satisfaction of the performing party (seller) C) satisfaction of the receiving party (buyer) D) satisfaction of an expert third party

A) strict performance

What is the term for when a party to a contract performs his duties exactly according to the terms of the contract? A) strict performance B) specific performance C) substantial performance D) perfect performance

B) a conditioned precedent

What type of condition specifies an event that must happen before a person is obligated to perform the duties specified in the contract? A) a condition specific B) a condition precedent C) a condition subsequent D) a condition concurrent

condition subsequent

When a condition operates to terminate a party's absolute promise to perform, and the party does not perform any further

material breach

When anticipatory repudiation occurs, it is treated as a ___ of the contract, and the non breaching party is permitted to bring an action for damages immediately

concurrent conditions

When each party's absolute duty to perform is conditioned on the other party's absolute duty to perform, ___ are present

B) at any time, if the parties are in agreement

When may a contract be modified? A) only before it is signed by all parties B) at any time, if the parties are in agreement C) never D) at any time, if the contract is oral

personal

When the subject matter of the contract is ___, a contract to be performed to the satisfaction of one of the parties is conditioned and performance must actually satisfy the party

subjective impossibility

___ excuses do not discharge a contract, and the nonperforming party is normally held in breach of contract

statutes of limitations

___ limit the period during which a party can sue on a particular cause of action

substantial

a breach is material when performance is not at least ___

accord

a contract to perform some act to satisfy an existing contractual duty that has not yet been discharged

condition

a qualification in a contract based on a possible future event, the occurrence or nonoccurrence of which will trigger or suspend the performance of a legal obligation or terminate an existing obligation under a contract

tender

an unconditional offer to perform an obligation by a person who is ready, willing, and able to do so

agreement

any contract can be discharged by ___ of the parties

minor

if a breach is ___, the nonbreaching party's duty to perform may sometimes be suspended until the breach is remedied, but the duty is not entirely excused

material

if there is a ___ breach, the nonbreaking party is excused from the performance of contractual duties and can sue for damages caused by the breach

recission

occurs when the parties cancel their contract and are returned to the positions they occupied prior to the contract's formation

commercial impracticability

the doctrine of ___ does not provide relief from such events as ordinary price increases or easily predictable changes in the weather

breach of contract

the nonperformance of a contractual duty

satisfaction

the performance of the accord agreement

novation

the substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated. Substitutes a third party for one of the original parties